Although not completely reassuring for gold investors, the upward price trend displayed by the yellow metal at the end of last week shows positive signs.
When the results of the FOMC meeting were announced early Thursday morning, the price of gold plunged below the $2,600 zone.
Investors began to worry when they expected the situation to continue and would see prices sink further while the US dollar was seen gaining an advantage to strengthen.
However, the price fall did not continue, instead the price began to recover and rise from the $2,600 zone, approaching the price level before the plunge.
The positive signal for gold trading was observed in the movement of the XAU/USD chart which measures the value of gold against the US dollar.
On Friday, the price managed to surge from the 2600.00 level to a high of around 2630.00 and gave a bullish signal when it managed to cross the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart.
If the price increase at the beginning of this week continues, the price is seen to approach the previous focus zone at 2650.00-2670.00.
A higher increase beyond this zone would show a clearer bullish movement for gold which will target the resistance zone of 2700.00 again.
However, if the price of gold turns down again after this, the reaction at the important zone of 2600.00 will be observed for further direction.
If it plunges lower, the target shifts to 2530.00 for the price to continue the previous week's downward pattern and record the latest low.
